Question

You are a statistician tasked with the challenge of proving that the nation of Remulak is selling its wine in the United States at a price below that which is charged domestically in Remulak. The issue is that the Remulak government is coordinating predatory pricing by subsidizing a lower price charged in the US in order to stimulate export demand for their most prolific product. The data available has been collected from random samples of single bottles of Remulak wine sold in both the United States and in Remulak. Currency exchange experts have adjusted the price charged in Remulak to US Dollars reflecting both the exchange rate differences and differences in real prices between the two nations.

You should prepare confidence intervals of the difference of the two pricing levels at both the 95% and 99 % confidence levels. Further, you should conduct an appropriate hypothesis test for a difference in price of $1.70 per bottle lower in the US, which agricultural economists have determined is the minimum difference required to significantly induce increases in US demand for Remulak wine.

Set up median and standard deviation for U.S. data and Remulak data. Show calcuation for z-score and plot.

Be careful that this is set up properly so that you are testing at the correct tail.

USA Remulak 18.20 18.50 16.20 14.00 17.20 18.20 18.70 21.10 18.40 13.90 16.60 18.70 14.90 14.90 16.80 16.40 12.10 16.30 10.80 18.00 18.50 16.80 15.50 19.80 16.20 17.30 16.30 16.60 18.20 14.90 19.50 16.30 13.20 16.50 16.80 15.40 12.90 17.60 17.20 20.10 18.20 16.40 16.30 18.00 16.80 17.50 16.40 18.40 18.60 19.80 15.60 14.80 17.10 18.20 18.10 16.70 18.90 20.20 19.00 16.20 17.30 20.40 18.80 17.90 14.90 15.50 16.70 15.40 20.30 17.70 17.10 17.10 14.60 17.90 17.20 17.40 13.00 18.20 18.40 16.20 16.90 18.50 13.30 16.90 16.30 17.60 15.90 14.40 16.60 21.60 17.60 18.60 16.00 16.20 17.10 14.30 14.60 12.50 18.00 20.00

Answer 1

Answer to the question)

enter the data in excel

Click on data tab

Click on data anlaysis

Select 2 sample T test with unequal variances

Click ok

the following window appears on screen

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enter the data of remulak as variable 1 and data of USA as variable 2

make the hypothsized mean difference equal to 1.7

click ok , to get the output

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We get

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The P value for one tailed is 0.0043 < alpha 0.05 , thus we conclude that the USA is 1.7 less than Remulak

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